Company News, 2013-12-11, 11:31 AM
ThyssenKrupp further expands presence in Chinese automotive sector
- New plant for auto components opened in Chengdu
- Strategic growth in auto components business continues: Investments of around 1 billion € in the last three years
- Options for growth in Asia, South America and Europe exploited in fiscal 12/13
ThyssenKrupp today opened a new automotive supply plant in China. In Chengdu, Sichuan Province, in the southwest of the country, the company is now producing springs and stabilizers for the Chinese market. ThyssenKrupp has invested around 20 million euros in the new plant, which has created roughly 200 new jobs. The plant has an annual production capacity of around three million springs and 1.5 million stabilizers. The new production facility is a joint venture between ThyssenKrupp (60 percent) and the Chinese component manufacturer Fawer Automotive Parts Ltd. (40 percent).
The strategic expansion of automotive supply plants in the world’s growth regions is a key component of ThyssenKrupp’s transformation into a diversified technology group. In the past three years the company has invested around one billion euros in the global expansion of its auto components business.
“For us, China is the world’s most important growth market. In the last two fiscal years we have invested some 250 million euros in new supply plants for the Chinese automotive industry and now have seven production facilities in this technology segment in the country. Another plant for cylinder head modules is currently under construction,” said Dr. Karsten Kroos, CEO of the Components Technology business area at ThyssenKrupp.
ThyssenKrupp’s range of automotive products in China extends from crankshafts, camshafts, cylinder head modules, steering systems to springs and stabilizers. In total, ThyssenKrupp employs around 3,800 people at ten production facilities in the components business for the Chinese auto, truck, building machinery and wind power industries. In fiscal 2012/2013, the company generated sales of around 750 million euros in this segment in China, with the automotive supply sector accounting for roughly two thirds of this figure.
“Our components are helping meet the rising demand for greater personal mobility in the growth regions of the world. At the same time, we are enabling our customers to produce lighter, more economical, more comfortable and safer vehicles with our products,” continued Kroos.
In addition to the new plant for springs and stabilizers in Chengdu, ThyssenKrupp has exploited further options for growth in the automotive components business in Asia, South America and Europe in the past twelve months. For example, a new plant for cylinder-head modules was opened in Ilsenburg in Saxony-Anhalt (Germany) in the summer. Two further such plants are currently under construction in China and Brazil. Elsewhere in China, a new production line for cylinder-head modules in Dalian and a new crankshaft plant in Nanjing were opened this year. In Shanghai, a new production line for steering systems also started operation, as did a new axle assembly plant in Hungary. ThyssenKrupp has invested around 350 million euros in these projects.
The new plant for springs and stabilizers in Chengdu is ThyssenKrupp’s first production facility in western China and covers an area of approx. 14,000 square meters. Construction began in summer 2012 and the building was completed on schedule this spring. This was followed by installation of the production machinery and ramp-up of the lines. Production then began in October.
Springs and stabilizers are important comfort- and safety-relevant components in cars. They ensure even grip, while absorbing and cushioning shocks from the road surface and centrifugal forces during cornering.